Having a accounting system in place to generate reliable accounting information is imperative for any business. It allows the owner, and investors to know if the company is making profit, how much they are making, and what they need to do to increase the profit. Having the accounting information allows them to see where they are spending their money, and if they need to increase, or decrease spending in a certain category. It also shows them how much revenue they are making, and if they need to increase, or decrease the amount they are charging for their services, or products. Having accurate accounting records helps the owners to attract stockholders, and investors. This accuracy will help them retrieve loans from the bank to expand their business, or make improvements. The banks want to see if the company will be able to pay back the loans. Some of the things they will look at is, debt to income ratio, assets, and if the company is making a profit. Investors will want to know that the company will continuously be making a profit. The accounting records can be used as a guide to improve any business. Without these accurate records, owners will not know the financial status of their company.

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